Print This Post
Tuesday, December 22nd, 2009REALTORS® and their clients who encounter unlawful or unprofessional conduct by an appraiser may file a confidential complaint with California’s Office of Real Estate Appraisers (OREA). Since implementation of the Home Valuation Code of Conduct (HVCC) in May 2009, REALTORS® have reported many challenges and difficulties with appraisals, such as low appraisals, inexperienced appraisers, out-of-area appraisers unfamiliar with a local neighborhood, and problems with Appraisal Management Companies (AMCs). Appraisers are regulated by the OREA, and starting January 1, 2010, a new law directs the OREA to develop a registration process and other regulations to oversee AMCs as well.
A complaint of appraiser’s misconduct may be filed with the OREA. The complaint may be made confidentially, but proper prosecution may ultimately require the complainant’s testimony in a legal proceeding.
To address HVCC and other appraisal issues, the following is a compilation of resources for REALTORS® and their clients:
- California Office of Real Estate Appraisers website is at www.orea.ca.gov.
- OREA Consumer’s Guide: Filing a Complaint and the Investigation Process.
- OREA’s Complaint Form and Instructions.
- Text of the Home Valuation Code of Conduct.
- Fannie Mae’s HVCC Frequently Asked Questions (FAQs).
- Federal Housing Finance Agency Notice dated July 22, 2009 addressing certain HVCC issues.
UPDATE ON RESIDENTIAL PURCHASE AGREEMENT
C.A.R.’s Standard Forms Committee is in the process of revising the Residential Purchase Agreement (RPA) and related forms. You are encouraged to review the latest draft versions of these forms and give us your comments and suggestions by January 15, 2010. The proposed changes are available at http://www.car.org/legal/standard-forms/rpa-study-group-input/. The most recent proposed changes appear in green and earlier proposed changes are in red. Thank you for your involvement with C.A.R. Standard Forms!
I am suprised that there are agents/brokers who do not do their homework. They do not know the trends in their market area, do not take the time to pull comps or to meet with the appraiser. But complain, and try to hide behind it through confidentiality. Every time I see this happen it is about values. people trying to push values.
There are several things to keep in mind, very recent sales cannot be ignored by the appraiser. If you know something about one of them (non-arms length etc) speak up and don’t be lazy. Protect your client, I can’t believe how often a buyers agent is pushing for higher values! Talk to the appraiser, actually do your homework and meet them at the site with information, not 5 month old sales from a different neighborhood!
Lastly, there are 2 federal laws and 1 state civil code to stop appraiser pressure and it can take many forms and happens recently from agents and home owners alike. I press charges on each and every one as it is rampant now.
Be a professional and do your job, don’t complain when you take the easy way out and just want to backlash out at someone. Plus the Office of Real Estate Appraiser’s is well aware of frivolous value complaints and have uped their screening process to weed these out.
Gary-Appraiser & Broker